What You Need to Know About Selling a House in California

Should I accept the first offer on my California house?

It depends. “Usually, your first offer is going to be one of your better or best offers,” Sandoval says.

If the offer is:

• In good faith
• At or above the asking price
• Satisfies the seller

It might be in your best interest to accept that first offer.

It might be the case that you have competing buyers, or you want to see the market for your home. In that case, you don’t have to take the first offer. You have the option to:

• Counteroffer
• Negotiate concessions
• Discuss inspection contingency

How much will I make selling my California home?

How much you will make selling your California home depends on a whole host of variables. To determine how much you will make, first, you need to understand closing costs, taxes, and other expenses associated with selling. Typically, these are the fees you can expect to pay:

Typical closing costs in California

These estimated figures can be a helpful planning tool as you prepare to sell your home in California.

The median home price in California is $852,880. If you sell your home for this price and calculate the closing costs, including the typical mortgage payoff, you may be paying more than 50% of the home’s sale price or more than $426,440. Check out how California’s closing costs compare to national averages.

To determine how much you’ll get after the selling-related fees, use HomeLight’s Net Proceeds Calculator. It can help you estimate the cost of selling your home and the net proceeds you might earn from the sale.

What do I have to disclose when selling a house in California?

Buyer beware is no longer the law of the land in California. California’s Civil Code 1102 stipulates that sellers have a legal obligation to disclose any material facts about a property. Failure to disclose may result in penalties.

Sellers in California are required to complete a Transfer Disclosure Statement. You need to fill out any information that may influence a buyer’s decision to purchase the home.

The form specifically asks the seller to disclose the presence of the following:

1. Features of the home, including, but not limited to:

• Kitchen appliances (range, oven, microwave, dishwasher, trash compactor, garbage disposal)
• Washer and dryer hookups
• Alarms (burglar, smoke, carbon monoxide)
• Central heating and air conditioning
• Plumbing (public sewer, septic, sump pump, water softener)
• Water-conserving plumbing fixtures
• Water supply (city, well, private utility)
• Gas supply (utility or tank)
• Windows (screens, bars, quick release mechanism)
• Additional structures (patio, deck, gazebo, gates, garage, carport)
• Amenities (hot tub, spa, pool, safety barriers for the amenities, heaters for the amenities, fireplace)

1. Defects and malfunctions including, but not limited to:

• Walls (interior and exterior)
• Ceilings
• Floors
• Insulation
• Roof
• Windows
• Doors
• Foundation
• Driveway
• Sidewalks
• Walls and fences
• Electric systems

1. Hazardous material
2. Common spaces, encroachments, easements
3. Room additions
4. Soil problems
5. Flooding or draining issues
6. Major damage
7. Zoning violations
8. Neighborhood nuisances
9.  Deed restrictions
10. HOAs
11. Notices of abatement or citations

Selling a home in California also requires these additional disclosure forms including:

• Natural Hazard Disclosure Statement: Shows whether the home is in zones predisposed to earthquakes, flooding, fire, or wildland risks;
• Disclosure of Information on Lead-Based Paint: Lets the buyer know about lead hazards in the property (Disclosure of the presence of other dangerous chemicals and substances, such as radon and asbestos is likewise required)
• Megan’s Law Disclosure: Requires sellers to inform buyers about the location of registered sex offenders in the area
• Statewide Buyer & Seller Advisory (SBSA): A guide adopted by the California Association of Realtors to mitigate the risk of a compromised deal
• Residential Earthquake Hazards Report: Tells buyers about the potential earthquake-related hazards that may affect the property’s structure and the surrounding area
• Disclosure Regarding Real Estate Agency Relationship: Documents any agents’ relationship with other stakeholders
• Seller Property Questionnaire: Requires disclosure of a death if it occurred within three years before the sale
• Mello-Roos Disclosure Notice: Discloses special tax provisions that may apply to the property
• Presence of military ordinance, like bombs and munitions, according to California Civil Code, CIV § 1940.7
• Excessive mold, which has the potential to make your California home substandard and unsuited to habitation

You’re responsible for many disclosures when selling a home in California. The California Association of Realtors created a comprehensive sales disclosure chart to assist sellers.

Disclosure exceptions

While disclosures of material defects on the property are required in California, you may be exempted if you:

• Haven’t lived in the home
• Received the property as part of a transfer from a trust, decedent’s estate, guardianship, or conservatorship
• Are transferring the home by court order like in a divorce

You don’t have to disclose a death in your California home if the death occurred more than three years before the sale of the house. You also don’t have to inform the buyer if a prior occupant had Acquired Immune Deficiency Syndrome (AIDS).

What documents do I need to sell a home in California?

Anyone selling a home in California must have the following documents:

• Two forms of current ID, like a driver’s license or passport
• Signed deed
• Closing disclosure if the buyer purchases the home with a mortgage. This document provides:
  • Loan payoff information
  • Final loan terms
  • Closing costs
  • Summary of all costs, or statement of closing costs
• California Real Estate Purchase Agreement, the standard real estate contract which details:
  • Sales price
  • Financing
  • Property description
  • Other terms that the buyer and seller agree to
• Bill of Sale offers legal protection for buyers and sellers. It contains important information about the buyer, seller, and property, such as their names, addresses, and contact details, as well as the property description and transfer of ownership statement.
• Affidavit of Title allows you to claim your right to sell your California home, that there are no liens, nor a simultaneous purchase deal.

Are there additional documents I need to sell a home in California?

You may be required to provide these additional documents when selling a home in California:

• California Correction Statement and Agreement: This form, which the buyer and seller sign at closing, guarantees that either party will execute corrected documents in the event of certain errors.
• HOA bylaws and guidelines: If the home is part of an HOA, the seller should provide these documents.
• Survey results: This provides the property’s exact location, size, and dimensions.
• Home inspection results: This contains the home inspection report.
• Proof of repairs: If you’ve made repairs to the property before the sale, you’ll need to provide receipts or invoices for those repairs.
• Home warranty: This includes information about your coverage, due dates, and premium payments.
• Copies of wills, trusts, or power of attorney letters (if applicable): These documents ensure you are the legal owner of the property and have a right to sell the property.

While it may sound like a lot of paperwork to manage, an experienced California real estate agent can help you navigate through this ocean of home sale documents.

How can I prepare my California home before the sale?

There are a number of factors to consider as you prepare to sell your California home. Find the right balance of time and money investments for overall repairs and fixes that might be needed to be ready for the home appraisal, home inspection, and showings.

What repairs to make — or not make — before selling

While it might be tempting to dive into major renovations, keep in mind that high-end projects often offer a low return on investment (ROI). For example, kitchen remodels and bathroom additions typically recoup only 38% and 33% of their costs, respectively. On the other hand, upgrades that enhance curb appeal tend to deliver the best returns.

“What it boils down to is the home’s presentation, make it look presentable, and check all the boxes for your buyer,” Sandoval says. That means your target as a seller is to hit the sweet spot for home repairs that will make your house marketable.

We’ve gathered a list of home improvements you should make and those you are better off skipping before selling your house in California.

Fix it: 

• Painting the interior and exterior is a minimal investment. It makes the buyers “look forward to walking through your whole house,” Sandoval says.
• Plumbing problems, such as leaky pipes, stinky sinks, and clogged drains, may indicate massive plumbing problems that a buyer does not want to deal with.
• Stinky smells, such as smoke or pets, can prevent you from selling a home. A professional deep clean and a fresh coat of paint can eliminate the offending odors.
• Minor broken things can turn off buyers. This is why it’s important not to defer routine maintenance. Spend a little time and money to replace bulbs, rotted wooden frames, and chipped tiles. It’ll show that you took care of the house.
• Landscaping is key, so enhance your home’s curb appeal. “I’ve had buyers look at the landscaping of the home and not get out of the car sometimes,” Sandoval says.
• Foundation issues can be pricey, but finding your contractor may save you money in the long run.

Skip it: 

• Replace the roof. It’s expensive (up to $47,000), so replacing it might not make much financial sense. If your roof is in rough condition, you may need to give the buyer credit toward a new roof.
• Cosmetic fixes are wholly unnecessary. Decisions on fixtures are personal, and what you choose might not be what your buyer would want.
• Kitchen upgrades are not a good idea because they are expensive. Moreover, they don’t necessarily increase the home’s sale price.
• Bathroom renovations are costly. Instead, spruce it up and ensure the sink, shower, drains, and toilet work.
• Don’t worry about replacing the HVAC. It’s long-lived at about 10 to 15 years. Instead, have the ducts cleaned and the lines flushed by an HVAC technician. You can also replace the filters.

To prepare for the home appraisal

After you accept an offer, the buyer’s lender usually contacts a third-party appraisal management company (AMC), which then selects an appraiser from their network. The appraiser’s role is to provide a professional opinion on your home’s value. The appraisal is meant to ensure the home is worth what the buyer asked to borrow for the purchase.

To prepare for the home appraisal:

• Have a flexible schedule. A delayed appraisal can be a huge inconvenience for everyone involved.
• Research your home’s value using online tools like HomeLight’s Home Value Estimator, your agent’s CMA, or a pre-listing appraisal.
• Make minor repairs.
• Make everything accessible for the appraiser.
• Clean and tidy up the house for the appraiser’s photos.

To prepare for the home inspection

Sellers in California shouldn’t balk at a home inspection. “Sellers can address issues with the property proactively,” Sandoval says. Buyers don’t have to accept a seller’s pre-listing inspection, but it may be a helpful planning tool.

To prepare for the home inspection:

• Complete repairs you found out in a pre-inspection or that your agent recommends.
• Give the inspector easy access to all areas.
• Do preemptive maintenance.

To prepare for showings

Californians love their pets, but sometimes those pets are stinky. “Smells are huge; I’ve had buyers walk into an immaculate home that stunk like pets, and it deterred them from buying the house,” Sandoval says.

To prepare for showings:

• Eliminate odors.
• Pack up your personal effects.
• Put out flowers.
• Design a stunning landscape.
• Declutter.
• Leave out snacks.

What if my California home needs repairs I can’t afford?

“I understand some sellers don’t have the money to do everything. In that case, highlight the very best attributes of your house and price your home with the market,” Sandoval says.

An experienced agent will know how to help you find a solution to any selling situation, even a home that needs repairs you don’t think you can afford. Top agents often know and work with local contractors, have connections with cash investors, or may have knowledge of bridge programs to help you repair your home and sell it for a higher price, allowing you to repay the funds after the sale.

Alternatively, you can request a no-obligation quote from a platform like HomeLight’s Simple Sale, which will let you compare a no-obligation cash offer with what a top agent in your market might be able to get for your home. We’ll share details about cash offers and other selling options later in this post.

What are some tips to market my house for sale in California?

To sell your home quickly and for top dollar, you need more than a sign in the yard. A savvy marketing strategy will have buyers lining up and your home selling quickly amid the persistently high mortgage rates.

Here are the effective ways you can market your home in California:

• Stage your home, declutter, and depersonalize
• Take great photos
• Showcase the home’s unique features video
• Leverage social media
• Write a stellar description
• Be targeted to the buyer in your approach

When is the best time to sell my house in California?

The best time to sell your California home can vary depending on location.

For instance, in Los Angeles, the best month to sell is in November. You could sell your home for 2.57% more than the yearly average.

Suppose you want to sell your home fast. June is the best month, so you need to list it in March. Homes listed in March sold an average of four days faster.

Search your home’s location using our Best Time to Sell Calculator, where we crunch days on the market and local home sale price data to determine what times of the year homes sell the fastest and for the most money on average.

What are my home-selling options in California?

The main options to sell a house in California include:

List with the help of a real estate agent

A great real estate agent will provide guidance and expert advice throughout the process of listing and selling your home. They help you set a reasonable selling price, provide preparation and presentation tips, execute effective marketing strategies, and work hard to attract the best buyers.

In a nutshell, a top agent reduces the hassles and headaches and saves time and money.

“As a real estate professional, I’m held to a higher standard. We’re able to spot red flags and protect our clients. We have a fiduciary duty and an interest in helping sell the property,” Sandoval says.

According to the National Association of Realtors (NAR), about 90% of home sellers worked with a real estate agent.

Sell by owner (FSBO)

This option, called “for sale by owner” or “FSBO,” is less common. Only about 6% of sellers took this route in 2024, a historical low. Most FSBO sellers are looking to avoid paying a commission to their listing agent.

Historically, sellers typically paid commissions to both the listing and buyer’s agents, usually splitting a 5% to 6% of the home’s sale price. However, following the landmark NAR lawsuit settlement, commissions have been decoupled.

Sellers are no longer obligated to cover the buyer’s agent’s fee (often 3%). Instead, buyers must negotiate fees directly with their agents. Despite this, some sellers still choose to offer compensation for the buyer’s agent to attract more interest and expedite the sale, keeping the total commission at around 6%.

While you may avoid agent fees when you sell via the FSBO route, you might sell your property for less. According to a 2024 NAR report, FSBO homes sold for a median price of $380,000, significantly lower than the median price of agent-assisted homes at $435,000.

Sell directly to a cash buyer

If you need to sell your home fast or just need a low-stress transaction — perhaps to sell an inherited or a distressed property — another option is to work directly with a property investor or house-buying company rather than list on the open market.

Some examples of cash buyers include:

iBuyers: Instant buyers, known as iBuyers, are real estate technology companies that buy homes. These companies, such as Opendoor and Offerpad, have front-facing websites where customers can request near-instant virtual offers on their homes.

iBuyers allow sellers to skip repairs and showings and tend to provide cash offers that are closer to market value than other types of home investors and flippers. These businesses typically charge a convenience fee that is a percentage of the sales price.

Simple Sale: Simple Sale is a HomeLight platform that provides a cash offer to buy your home, which allows you to skip repair costs, showings, and agent commissions. Simply provide a few details about your property, and you’ll receive a no-obligation all-cash offer in as few as 24 hours.

If you accept a Simple Sale cash offer, you can close in as little as 10 days. It’s one of California’s fastest, most convenient ways to sell a home.

We Buy Houses investor groups: We Buy Houses operations typically buy homes at a discounted rate and generally seek out homes needing significant repairs. They help sellers cash out quickly and many will cover a seller’s closing costs.

If you are considering a cash offer from an investor group, vet the company thoroughly. The level of experience, integrity, and customer service you experience can vary.

Some are established franchises that strive to maintain consistent standards. Others are small groups or individuals that may not have a proven track record. Check reviews, read testimonials, and research the company’s presence and performance in the market.

And, of course, read any buying agreement carefully before signing.

How can I find a top-performing real estate agent in California?

HomeLight’s Agent Match platform can connect you to the top-performing agents in your California market. This free tool analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

Our data shows that the top 5% of real estate agents across the U.S. sell homes for as much as 10% more than the average real estate agent.

What are the most common mistakes California home sellers make?

“There’s a lot of mistakes,” Sandoval says, “not using a Realtor® is number one.” Other mistakes include:

• Not using the correct disclosure forms, which can lead to litigation
• Misfiling paperwork
• Failing to prep properly
• Not having a clear, targeted marketing strategy

More insider tips to sell your home in California

As the pandemic changed how people use their spaces, they want more space and “flexible space” to work from home, home school, or pursue other interests, Sandoval says.

Other things that California buyers are looking for include:

• Bigger pieces of land which enable the installation of an accessory dwelling unit (this feature “adds value to the property and enhances desirability,” Sandoval says.)
• Good property deals outside of the city
• Pools, a must-have to stay cool in the heat
• Space for an RV, trailer, or vehicle to “cut down on storage costs,” Sandoval says.

Be prepared for seller concessions

As the market shifts, sellers offer more concessions. “Sellers are offering closing cost credits. Sandoval says, “you see it all the time on listings, anywhere from 1% to 3% credit.”

Ready to sell your house in California?

Every state has rules and regulations that guide home sales. Selling a home in California is no different.

Although it might seem like selling your California home is complicated, trust your real estate agent or real estate attorney to help you navigate the required paperwork, disclosures, and anything else that might pop up during the transaction.

HomeLight’s Agent Match can connect you with top-performing agents in California who have the local experience and market knowledge to guide you through every step of the home-selling journey successfully.

LEARN MORE
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Steps to Selling an Inherited Property in California
Selling a House ‘As Is’ in California
California Recently Sold Homes
10 of the Top Real Estate Companies in California
California Housing Market Overview

Header Image Source: (Ariel Blanco / Unsplash)